The Economic and Financial Crimes Commission (EFCC) has secured the fresh conviction of a Nigerian crypto company, Plip Global Ventures, which admitted to illegally conducting USDT-to-Naira transactions without a banking license.
The conviction, which resulted in the firm forfeiting N25 million to the federal government, was handed down on Monday by Justice Inyang Ekwo of the Federal High Court, Abuja, in case number FHC/ABJ/CR/294/2024.
This latest ruling adds to the growing number of convictions related to illegal crypto trading in Nigeria, following plea bargains between suspected companies and the EFCC.
What Happened in Court
- At its arraignment on Monday, the company was charged with failing to report a single transfer of N100 million into its account to the Special Control Unit against Money Laundering (SCUML) of the EFCC, as required under Section 11(1)(b) of the Money Laundering (Prevention and Prohibition) Act, 2022
- The transaction was said to have happened in December 2023.
- Like other convicted firms, Plip Global Ventures was accused of trading United States Dollar Tether (USDT) for Naira and engaging in specialized financial activities without a valid license, despite not being an authorized dealer in the Nigeria Autonomous Foreign Exchange Market.
- When the charges were read to Chukwubuka Felix Ogumba, the company’s director, he pleaded guilty on behalf of the firm.
- EFCC lawyer Ogechi Ujam then asked the judge to convict the company according to the plea bargain agreement, a request that was supported by the firm’s legal team.
What the Judge Said
After hearing from both parties, Justice Ekwo convicted the firm in accordance with the plea bargain and imposed a fine of N500,000, to be paid to the Federal Government of Nigeria.
- The judge also ruled that the company must forfeit the sum of N25,000,000 (Twenty-Five Million Naira) – recovered by the EFCC during its investigation to the Federal Government.
- Justice Ekwo further stated that the plea bargain agreement would not prevent further investigations into other individuals or companies related to this case.
The judge said the company’s director shall, at all material and reasonable times, be available to assist the EFCC during further investigations as it relates to this case
What You Should Know
The verdict highlights the EFCC’s ongoing legal crackdown on Nigerian crypto firms involved in unlicensed USDT-to-Naira transactions.
Nairametrics previously reported that two other Nigerian crypto companies, Paparaxy Global Ventures Limited and Lemskin Technologies Limited, refunded N160,000,000 to the federal government after being indicted for conducting unauthorized financial activities.
This case is part of the EFCC’s broader investigation, which has allegedly uncovered several bank accounts linked to individuals allegedly using virtual cryptocurrency exchange platforms to manipulate the Naira’s value and launder proceeds from illegal activities.
